EUR/GBP to suffer further losses on a break below 0.8300/0.8270 – SocGen

EUR/GBP is at the crucial support of 0.8300/0.8270 representing the lower band of its range since July 2016. Below here, the next projections are located at 0.8220 and April 2016 high of 0.8110, economists at Société Générale report.

The 200-DMA at 0.8530/0.860 is an important resistance near-term

“A bounce can’t be ruled out towards 0.8425 and more importantly the 200-DMA at 0.8530/0.8600. This will be an important resistance near-term.”

“Weekly MACD is languishing in negative territory which denotes upside momentum is still lacking.”

“In case the correction persists below 0.8300/0.8270, the pair could witness an extended downtrend towards 0.8220 and April 2016 high of 0.8110.”